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on Economics of Human Migration |
| By: | Dirk Dohse; Robert Gold |
| Abstract: | In recent decades, the ethnic composition of the European population has changed substantially, leading to a rapid increase of cultural diversity in the EU as a whole, at the level of individual member states, and at the regional level. This paper focusses on the regional level and investigates the relationship between cultural diversity and regional economic performance for the EU 27. Giving particular attention to regional innovation, GDP per capita, and its development over time, the paper finds that culturally more diverse regions are on average more innovative, which translates into higher growth and better economic performance. An important finding of this study is, however, that the positive effect of cultural diversity on regional economic performance is not present in all sub-samples of the European regions alike. |
| Keywords: | Regional Development, Cultural Diversity, Measurement Issues |
| JEL: | M13 O18 R11 |
| Date: | 2014–03 |
| URL: | http://d.repec.org/n?u=RePEc:feu:wfewop:y:2014:m:3:d:0:i:58&r=mig |
| By: | Cristina Mitaritonna; Gianluca Orefice; Giovanni Peri |
| Abstract: | Immigrants may complement native workers, allow reallocation by skill in the firm and lower costs. These effects could be beneficial for the firm and increase its productivity and profits. However not all firmes use immigrants. Allowing firms to have differential fixed cost in hiring immigrants, because of different information and access to their network, we analyze the impact of an increase in local supply of immigrants on firms' immigrant employment and productivity. Using micro-level data on French firms during the period 1995-2005, we show that a supply-driven increase in foreign born workers in a department (location) increases the productivity of firms in that department. We also find that this effect is significantly stronger for firms with initially low (or zero) level of foreign employment. Those are also the firms whose share of immigrants increases the most. We also find that the positive productivity effect of immigrants is associated with faster growth of capital and improved export performances (for extensive and intensive margin) of the firms. While these outcomes depend on the firm share of immigrants in employment we find a positive effect of immigration on wages of natives and on specialization of natives in complex occupations that is common to all firms in the district. Supply-driven increase in foreign born workers in a department (location) implies a re-allocation of native workers towards communication and cognitive intensive tasks. |
| Keywords: | immigrants;firms;productivity;heterogeneity;fixed cost of hiring |
| JEL: | F22 E25 J61 |
| Date: | 2014–03 |
| URL: | http://d.repec.org/n?u=RePEc:cii:cepidt:2014-09&r=mig |